Gold tops $4,400 as traders await US inflation report

Gold rose above $4,400 an ounce in early Tuesday trading after a sharp two-day rally, with investors turning to this week's US inflation data for the next signal on Federal Reserve policy. Spot gold traded near $4,395.64, after prices reached a seven-week high on Friday and then added 3.6% over the previous two sessions. The move followed weak US payrolls data that pushed traders to scale back expectations for a September rate increase. Analysts said softer consumer price data on Wednesday would support the case for keeping rates steady, a backdrop that tends to help non-yielding bullion. Rising oil prices and tension around the Strait of Hormuz remained a competing risk for inflation and rate expectations.